Have you been eager to see how Welltower Inc. (NYSE:WELL) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Toledo, OH-based, healthcare real estate investment trust’s (REIT) earnings release this morning.
FFO Missed
Welltower came out with normalized funds from operations (FFO) per share of 99 cents, missing the Zacks Consensus Estimate of $1.00.
How Was the Earnings Surprise Trend?
Welltower has a mixed earnings surprise history. Before posting a miss in Q1, the company delivered positive surprise in two out of prior four quarters, missed in another and came up with in-line performance in the other occasion, as shown in the chart below. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.47% in the trailing four quarters.
Revenue Came In Higher Than Expected
Welltower posted revenues of nearly $1.1 billion, which beat the Zacks Consensus Estimate of $1.07 billion. It also compared favorably with the year-ago number of $1.06 billion.
Key Developments to Note
Welltower and ProMedica formed a strategic partnership which has jointly entered into a definite deal for acquisition of the real estate of Quality Care Properties, Inc. QCP. Simultaneously, ProMedica entered into a definitive agreement for acquisition of HCR ManorCare operations. Per the deal terms, shareholders of Quality Care Properties will get $20.75 in cash for each share of its common stock. Moreover, all outstanding debt of Quality Care Properties will be assumed by Welltower. The agreement has got the nod from Welltower's, ProMedica's and Quality Care Properties' Boards of Directors.
However, due to timing variability associated with the completion of the ProMedica joint venture and acquisition of Quality Care Properties, the company has not included enhanced acquisition activity guidance in its current earnings outlook. As such, the company affirmed its normalized FFO per share outlook in the range of $3.95-$4.05 for 2018. Also, the company anticipates its 2018 average blended same store net operating income growth of around 1-2%.
Further, the company has increased its 2018 disposition proceeds projection to $1.9 billion from $1.3 billion guided earlier.
What Zacks Rank Says
Welltower has a Zacks Rank #4 (Sell). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Check back later for our full write up on this WELL earnings report!
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Welltower Inc. (WELL): Free Stock Analysis Report
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